Everything that has a beginning has an end.
Panama Papers: Mossack Fonseca leak reveals elite's tax havens
Everything that has a beginning has an end.
The Canada Revenue Agency (CRA) will soon be conducting its seventh annual Office Audit Letter Campaign.
The letter writing campaign is designed to facilitate behavioural changes among a selected taxpayer population by providing the selected population with relevant information in order to improve their understanding of their current or past reporting requirements and guidance on how to correct any common errors.
In January 2016, the CRA will send approximately 30,000 “intent-to-audit” letters to selected groups of individual taxpayers and business owners .
The objective of the campaign is to encourage letter recipients to review and where applicable correct their tax affairs.
CRA’s emphasis is on helping individuals and small businesses better understand their tax obligations, which in turn increases future voluntary compliance, protects the government’s tax base, and utilizes resources within the CRA more effectively.
If you have questions about the CRA’s Office Audit Letter Campaign or need help making changes to previously filed returns, please contact us.
As I posted in July 2015, the Lifetime capital gains exemption limit is increased – For dispositions in 2015 of qualified small business corporation shares and qualified farm or fishing property, the lifetime capital gains exemption (LCGE) limit has increased to $813,600. In addition, for dispositions of qualified farm or fishing property made after April 20, 2015, the LCGE limit has increased to $1,000,000
If you want to be eligible to enjoy this big reward, a very good tax planning is needed well in advance.
正如我在2015年七月所说，终身资本收益免税限额提高 - 2015年所处置的合格小企业法人股和合格的农场或鱼业财产，可享有的终身资本收益豁免（LCGE）限额已增加至$81.36万。此外，合格的农场或钓鱼财产在二○一五年四月二十日后出售的，LCGE增加至$ 1,000,000
Here is an example:
In 2015, the fed gov increased UCCB $60/m per child, since it's taxable income, you need to include it in your income or assign it to your child, however the big surprise change is that "The amount for children under 18 years of age has been eliminated and replaced by the enhanced universal child care benefit" . Basically, you are given $60 before tax, but if you have tax payable, you also lost a tax credit of $28, in total you get less than $32 per month. Of course, for lower income parents they may have net $60, but do they really like this option of this $60 or $28 comparing to higher income parents, if they could have more income by say two thousand dollars per month?
在2015年，Canada 联邦政府 给父母每个孩子$60 /月 的 UCCB，你需要把它列入你的收入，或将其分配给你的孩子，然而令人大跌眼镜的变化是，“18岁以下儿童税收抵免被增强的托儿津贴所取代”。基本上，您将得到个税前$60，但如果你有应纳税额，你也失去了税收抵免$28，你实得到少于$32。当然，对于收入较低的家长他们可能有净入$60，但他们是否真的喜欢这个每月$60 或相对高收入的父母的$28选项，如果他们能有更多的收入譬如说每月两千元？
After years of inflation, many deductible benefit limit is too low now. For example, the maximum meals deductible is $51 per day. How ever the government is reimbursing up to $61 ($15 per person for breakfast, $16 for lunch and $30 for dinner) per day to contractors who accommodating new refugees.
Ontario is raising the general minimum wage from $11 to $11.25 per hour, effective October 1, 2015. Minimum wage rates for jobs in special categories (liquor servers, homeworkers, students, etc.) are also increasing at the same time.
The increase is the result of recent changes to the Employment Standards Act, 2000 (ESA) that tie minimum-wage increases to Ontario's Consumer Price Index (CPI). This was recommended by the Minimum Wage Advisory Panel in its final report last year.
Increasing the minimum wage in a fair and predictable manner is part of the government's economic plan for Ontario. The four-part plan is building Ontario up by investing in people's talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives and building a secure savings plan so everyone can afford to retire.
Bizacctax' Comment for Small Business Owners and Self-employed Individuals:
Unfortunately, you are not protected by this, if you are at the lower-end or a starter, you may feel unfair, so you need make sure you claim every eligible tax credits.
The 2015 LCGE limit , indexed by a factor of 1.017, is $813,600.
The deduction can be claimed against taxable capital gains on the disposal by an individual of:
However, this award is not so easy to get, you need good tax planning long in advance.
The standard age for beginning to receive your Canada Pension Plan (CPP) retirement pension is the month after your 65th birthday. However, you can take a reduced pension as early as age 60 or begin receiving an increased pension after age 65.
The amount of your pension will depend on how much and for how long you have contributed to the CPP and on your age when you want your pension to start. If you take it before age 65, your pension will be reduced, by up to 36% at age 60. If you take it after age 65, your pension may be larger, by up to 42% at age 70.
There have been recent changes to the early pension reduction and late pension increase to ensure that whether you choose to receive an early or late retirement pension, the amount you receive will reflect your contributions made to the Plan and your average duration of benefits.
Taking your pension before age 65
From 2012 to 2016, the Government of Canada is gradually changing the early pension reduction from 0.5% to 0.6% for each month you receive it before age 65. This means that by 2016, an individual who starts receiving their CPP retirement pension at the age of 60 will receive 36% less than if they had taken it at 65.
If you begin receiving your retirement pension in 2015, it will be reduced by 0.58% for each month that you receive your pension before age 65.
For a person who applies for and receives their retirement pension at age 60, this represents a maximum reduction of 34.8% if taken in 2015, and 36% if taken in 2016.
Taking your pension after age 65
If you take your pension after age 65, your monthly payment amount will increase by 0.7 percent for each month that you delay receiving it up to age 70 (8.4% per year).
This means that, an individual who starts receiving their retirement pension at the age of 70 will receive 42% more than if they had taken it at 65.
There is no financial benefit in delaying taking your pension after age 70.
Following is message is from CRA EFILEITED<email@example.com>
High income amounts
We have observed numerous situations in which Efilers have inadvertently entered extremely high income amounts in fields on the returns and transmitted these amounts.
We are encouraging Efilers to review and verify the entries before transmitting their returns. High amounts in certain fields may be valid in some situations but in some cases, there appears to be confusion with placement of the decimal point (eg., an intended amount of $1234.56 is transmitted as $123456.00)
As you may know, the Government of Canada is switching to direct deposit payments. The Canada Revenue Agency (CRA) would like Efilers to continue to encourage their clients, both individuals and businesses, to enroll for direct deposit.
Tax practitioner's clients bring their required identification credentials when they come to file their tax return. The CRA would like banking information to be considered as essential information in order to complete their return and receive their refund. Not only will taxpayers receive their T1 refund by direct deposit, but also any of the other payments owed to them by the CRA, such as the Canada child tax benefit, Universal child care benefit, GST/HST credit, or any associated provincial/territorial credits.
Direct deposit is a fast and convenient way for your clients to get their income tax refund and other credit and benefit payments directly into their bank account without having to wait for a cheque. Direct deposit costs less and is better for the environment, too!